This case is a continuation of the Burburr Resorts & Hotels Corporation serial case that began in Chapter 1. The components of the Burburr serial case can be completed in any order. Burburr Resorts & Hotels Corporation is a fictitious corporation.Below is a list that contains Burburr’s food and beverage costs taken from its Statements of Operations for the past 26 years. In addition, the number of hotel rooms and suites owned by Burburr at the end of each of those 26 years has been gathered.

Requirements1. Using the high-low method, find the following cost estimates:a. Variable food and beverage cost per hotel room/suiteb. Fixed food and beverage cost per hotel room/suite2. Perform a regression analysis using Excel. Use # of hotel rooms & suites as the x and the Food and beverage costs as the y in your regression analysis.a. What is the estimated variable food and beverage cost per hotel room/suite?b. What is the estimated fixed food and beverage cost per hotel room/suite?c. In your opinion, is the number of hotel rooms and suites a good predictor of Burburr’s food and beverage costs? Why or why not?Compare the estimates of variable and fixed costs calculated using the high-low method to the estimates calculated using the regression method. Which method would most likely provide a better cost estimate? Explain.

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Year ended 12/31/21 12/31/20 12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 12/31/13 12/31/12 12/31/11 12/31/10 12/31/09 12/31/08 12/31/07 12/31/06 12/31/05 12/31/04 12/31/03 12/31/02 12/31/01 12/31/00 12/31/99 12/31/98 12/31/97 12/31/96 Food and beverage costs $1,106,000,000 $693,000,000 $572,000,000 $399,000,000 $694,000,000 $639,000,000 $634,000,000 $665,700,000 $621,300,000 $596,000,000 $639,500,000 $716,500,000 $697,600,000 $482,300,000 $278,100,000 $255,200,000 $240,600,000 $232,400,000 $228,000,000 $218,600,000 $116,600,000 $103,600,000 $95,900,000 $91,500,000 $82,800,000 $76,500,000 # of hotel rooms & suites 37,560 39,380 41,730 41,180 39,218 42,200 42,710 42,890 42,010 41,830 39,170 38,130 38,060 43,060 17,220 14,780 14,551 13,598 11,562 11,760 11,685 8,197 6,478 5,736 5,367 5,348